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How are they the same? Building up savings and paying down your credit cards are the exact opposite of investing. If you have to pay more on your mortgage and
by bcheung 8y ago
How are they the same? Building up savings and paying down your credit cards are the exact opposite of investing.
If you have to pay more on your mortgage and credit cards then that's less you can put into the stock market and invest in other things.
- elipsey 8y agoI think "Savings Rate" here is meant in the technical sense, not in the sense of household finances. It's an accounting identity in macroeconomics: https://en.wikipedia.org/wiki/Savings_identity https://en.wikipedia.org/wiki/Savings_identity